Assalamu Alaikum - Pakistan applies 40% duty on commercial used-car imports, plans changes to stop misuse
Assalamu Alaikum. Pakistan’s Commerce Ministry announced it has placed a 40% regulatory duty on commercially importing used cars and is working on reforms to stop people abusing vehicle import schemes meant for overseas Pakistanis.
Over the last few years the used-car market here has grown a lot, largely through baggage, gift and transfer-of-residence schemes that the Federal Board of Revenue oversees. Those rules were intended to let expatriate Pakistanis bring cars home for personal use, but officials say many have taken advantage of loopholes to import cars for sale, sometimes using informal payment methods.
The big increase in these imports worries the government and local manufacturers. They say unrestricted imports upset fair competition, increase the trade deficit and hurt investment in local assembly plants.
Commerce Minister Jam Kamal Khan said the government will require quality checks and clearer import rules to encourage compliance and transparency while supporting Pakistan’s industry. He added that pre-shipment and post-shipment inspections will be handled through the Engineering Development Board to make sure safety and quality standards are met. Amendments to the overseas Pakistani import schemes are being prepared to stop commercial misuse but still help genuine expatriates.
Khan also mentioned the new duty will be eased gradually each year to keep a balance between protecting local industry and allowing fair competition. The ministry is asking industry groups, like manufacturers and parts associations, for input as it finalizes the upcoming automobile policy in November.
“Our aim is not just to stop misuse of import rules but to boost local manufacturing and help Pakistan compete globally,” Khan said. The ministry will keep consulting stakeholders to try to make consistent policies that support sustainable growth in the auto sector.
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